Troy-based Flagstar Bancorp today announced that Flagstar Bank has signed a definitive agreement to acquire eight Desert Community Bank (DCB) branches in San Bernardino County, Calif. with approximately $600 million in deposits and $70 million in loans from East West Bank along with certain related assets. Terms of the transaction were not disclosed.
“The acquisition provides low-cost, stable funding to continue growing our balance sheet,” says Alessandro DiNello, president and CEO of Flagstar Bancorp Inc. “It also combines a successful deposit franchise with a significant Flagstar presence already on the West Coast, including our Opes Advisors division and warehouse lending and home builder financing activities.
“Expanding our deposit franchise into California made a lot of sense because it’s a state where we already do significant business.”
DCB, headquartered in Victorville, Calif. holds the second largest deposit share in the High Desert Region of San Bernardino County, the fifth largest county in California. The county has realized solid deposit growth of approximately 7 percent of an annual basis since 2012.
The transaction is subject to regulatory approval and customary closing conditions, but is expected to close in the first half of 2018. Flagstar was advised by the law firm of Morrison and Foerster.